The specific difference between investment advisors and investment intermediaries in some cases is so complicated that one wonders whether the quality of business experience is suitable for determining the obligations of financial intermediaries in general. For example, the scope and intensity of the obligation to provide information, including the responsibilities of the financial representative, depends on the specific circumstances of the particular case.
In particular, it is necessary to take into account the general situation of Qualiteam Quest, and also be based on business experience and the specific level of knowledge of the interested party. A “simple” financial agent (investment broker) may also be required to provide investor-friendly advice. With regard to “closed-end funds,” recent regulations have suggested that civil law advisory obligations also include the fact that mutual funds are difficult or impossible to trade due to the lack of a developed capital market and therefore it is impossible to access long-term money in advance.
Similar legal principles apply in the case of insurance, although case law takes into account not only the obligation to provide information, but also responsibility for incorrect advice, and not an exception to the requirement of “special trust”. On the contrary, case law is very cautious when it comes to making banks commit to advising their clients on lending. In the best case, this can be considered if not only a loan is provided, but a clear recommendation is given on possible forms of financing, and the borrower is unnecessarily recommended very complex and expensive combined loans that do not reflect the situation of the client.
In addition, anyone applying for a loan from a bank should, in principle, determine the necessary amount of capital and clarify the question of whether he can even provide a loan. The Bank also checks the creditworthiness and quality business experience only in its own interests and, therefore, is not responsible for negligence.
As an exception, in the case of loans secured by securities, he decided that the obligation to provide information can be considered here if the investor is inexperienced in this business, his initial investment goal was rather conservative, and he was advised to use this investment. However, even in these cases, as a rule, negligence related to the payment of contributions is taken into account, so that it considers only exemption from debt, but not the loss of own funds used as damage.
For distributors through financial intermediaries, it should be noted that, as a rule, representatives are not liable, unless they have taken a separate position as a person in relation to the client and have not used it, but only by the companies themselves. The party designated by the contracting party, however, requiring the personal trust of the other party to a certain extent and whose decision in these circumstances substantially depends on the conclusion of the proposed legal transaction, should also be liable for violation of obligations arising from the legal obligation established as a result of the beginning of contract negotiations . then himself, if he did not appear at the contract negotiations as a representative of one party, but if he only gave his informed consent to the contractor to conclude the contract and thereby determine the other part, then involvement in the business had a decisive influence for Qualiteam Quest.
However, for a “regular” intermediary business, it can be said that, as a rule, it is not a financial intermediary, but the company in respect of which it acts, is liable for damage in case of inadequate recommendations or information related to the quality of business experience.
The words “business experience” are not used here in the sense of a utilitarian language to express the ability to perform work as a business owner or simply to be a businessman. It includes the entire social language corresponding to the task (function) and communication behavior, which allows you to realize the reality of the function in the simulation.